National Insurance contributions (NICs) are a vital consideration for employers, particularly when providing employee benefits or using PAYE Settlement Agreements (PSAs). While employees generally pay Class 1 NICs on their earnings, Class 1A and Class 1B contributions are the responsibility of the employer alone. Understanding how these contributions work, which benefits are subject to them, and the associated deadlines can help businesses manage costs effectively and stay co

Interest earned on savings is a common form of income, yet many people are unsure how it is taxed. Whether interest comes from a bank, building society, or another source, understanding how the rules work can help avoid surprises and plan more effectively. This article provides an overview of how interest income is taxed in the UK, including the savings allowance and the 0% starting rate. How Interest Is Paid and Taxed Interest from UK banks and building societies is usually

A dividend is a distribution of profits by a company to its shareholders. When a UK company pays a dividend, the amount received is usually paid in full with no tax deducted at source. For example, if a shareholder receives a dividend of £18,000, that is the actual cash received. Dividends are treated separately in the income tax calculation because they are taxed at different rates from salary, self-employment income, and interest. They are always taxed as the final part of

Providing living accommodation to an employee can be a valuable part of a remuneration package, particularly where the role requires the employee to be close to their place of work. However, from a tax perspective, employer-provided accommodation is treated as a benefit in kind and can give rise to a taxable charge on the employee. Whether a tax charge arises, and how the benefit is calculated, depends largely on whether the accommodation is considered job related or non-job

We would like to wish all of our clients and associates a very Merry Christmas and prosperous 2026. Please note we will be open as usual over the festive period, except for Bank Holidays 25–26 December and 1 January.

When selling an asset, understanding the date of disposal for capital gains tax (CGT) is essential. The disposal date is generally the date the contract to sell the asset is signed. If the contract is conditional, dependent on a specific event, the disposal date is the day all the conditions are fulfilled. Correctly identifying the date of disposal matters because it determines in which tax year any gain will be taxed. The actual date of payment of the sale proceeds is less i

A PAYE Settlement Agreement (PSA) is a formal arrangement between an employer and HMRC that allows employers to settle an employee tax liabilities on minor or irregular benefits and expenses payments. Sometimes employers provide employees with benefits or reimbursements that, while relatively small or occasional, still create a taxable liability. Employees may not expect to be taxed on these amounts, and an unexpected tax bill can be unwelcome. A PSA allows the employer to as

The Chancellor presented her Autumn Budget to Parliament on 26 November 2025, introducing a wide range of measures aimed at restoring fiscal credibility, managing inflationary pressures, and signalling future tax rises. While there were no headline surprises, the Budget adds further complexity to an already intricate tax system, and the full impact will only become clear as consultations and further guidance emerge in the coming weeks. The Chancellor’s approach appears design

For small businesses, providing life insurance for directors or employees can be challenging. Many companies cannot offer large group schemes due to cost or administrative complexity. Relevant Life Cover is a tax-efficient solution designed for small companies or single-director businesses, giving the same protection as a “death-in-service” benefit but in a tailored and compliant way. What Is Relevant Life Cover? A Relevant Life Policy is a life insurance policy arranged and

It’s easy to see the appeal that many company directors working from home think, “Why not have the company pay for my new garden office, reclaim the VAT, and deduct the cost for tax?” On the surface, it looks like a good idea, the business gets a corporation tax deduction, you get a modern workspace, and the company can even reclaim VAT on the costs. But this apparent win-win can turn into a tangle of VAT, income tax and capital gains tax issues later on. Below we explore why